KDI warns of tough economic times ahead

A state-run think tank reaffirmed Sunday that the Korean economy is in the doldrums as exports slow and private consumption remains sluggish.

In its latest monthly evaluation report. the Korea Development Institute (KDI) said that the economic downturn seems to continue with signs of sluggish domestic demand and a slowing pace of exports.

It is the third month straight that the KDI report assessed that Asia’s fourth-largest economy is losing steam.

Retail sales rose 1 percent on month in November, sharply slowing down from an average 2.8 percent growth in September and October.

Consumer sentiment reached 97.2 in December, far below the benchmark line of 100.

Exports fell 1.2 percent in December due to a drop in overseas sales of semiconductors and petrochemicals.

The think tank said there are strong headwinds ahead for the Korean economy as the global economy may enter a downside cycle. Rising uncertainties over U.S. economic and diplomatic policies will also weigh heavily on the Korean economy, it added.